Global LNG as a Fuel Market - Growth, Trends, and Forecast (2022 - 2030)
The demand for LNG globally has increased significantly, but its use as a fuel has still not gained momentum. LNG as a fuel is expected to gain momentum in the near future owing to tough emission regulations on the operations of marine vessels. Power plants have started using LNG as a fuel, but on a low scale, though it is an opportunity for the market, the growth in this segment is not likely to compete with transportation sector.
LNG as a fuel for Shipping Driving the Demand
The International Maritime Organization (IMO) has put a cap of 0.50% m/m on sulphur content, reducing it by around 85% from the current cap on ships’ fuel oil, effective from 1st January 2020. The strict regulations in response to climate change have put pressure on the shipping vessels to choose LNG in place oil. At the beginning of March 2018, there are more than 120 vessels burning LNG, with more than two-third operating in Europe. The number of the LNG based vessel is expected to be doubled due to tough IMO regulations in the near future driving the demand for LNG as a fuel.
Power Market an Opportunity for LNG
Coal-fired power plants have been the biggest player in terms of power generation, and now several economies are shifting to cleaner fuel such as natural gas, solar and wind for power generation. Recently, countries such as Brazil, Pakistan, and Bangladesh etc., have either introduced LNG fired power plants or it is in the construction stage and is expected to be operational during the forecast period. Bangladesh is developing the world’s one of the largest LNG-based combined cycle power plant of 500-600 MW. In 2016, Brazil started constructing two LNG fired power plant of a total capacity of 1.24 GW. As the technology improves and liquefaction becomes cheaper the number of LNG fired power plants is expected to grow significantly.
Europe and North America are expected to Experience the Fastest Growth
The maritime industry of Europe and North America is expected to move toward cleaner LNG fuel faster than rest of the regions, and hence, are expected to continue to be the leaders in the use of LNG as a marine fuel. The growth in developing countries, such as China and India, are expected to drive the marine trade in Asia-Pacific region. But this region lacks the infrastructure required for LNG fuel transportation, which in turn is expected to hinder the growth of LNG market during the forecast period.
Key Developments in the Market
• November 2017: Total acquired Engie’s upstream LNG business for USD 1.49 billion. The acquisition participation interest in liquefaction plants and long-term LNG sales and purchase agreements.
The major players include - Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell, Total, BP, China Petroleum & Chemical Corporation, Conoco Philips, Eni SpA, amongst others.
Reasons to Purchase this Report
• Current and future LNG as a fuel market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness fastest growth during the forecast period
• Identify the latest developments, and strategies employed by the major market players.
• 3 months analyst support along with the Market Estimate sheet (in excel).
Customization of the Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs.
LNG as a fuel for Shipping Driving the Demand
The International Maritime Organization (IMO) has put a cap of 0.50% m/m on sulphur content, reducing it by around 85% from the current cap on ships’ fuel oil, effective from 1st January 2020. The strict regulations in response to climate change have put pressure on the shipping vessels to choose LNG in place oil. At the beginning of March 2018, there are more than 120 vessels burning LNG, with more than two-third operating in Europe. The number of the LNG based vessel is expected to be doubled due to tough IMO regulations in the near future driving the demand for LNG as a fuel.
Power Market an Opportunity for LNG
Coal-fired power plants have been the biggest player in terms of power generation, and now several economies are shifting to cleaner fuel such as natural gas, solar and wind for power generation. Recently, countries such as Brazil, Pakistan, and Bangladesh etc., have either introduced LNG fired power plants or it is in the construction stage and is expected to be operational during the forecast period. Bangladesh is developing the world’s one of the largest LNG-based combined cycle power plant of 500-600 MW. In 2016, Brazil started constructing two LNG fired power plant of a total capacity of 1.24 GW. As the technology improves and liquefaction becomes cheaper the number of LNG fired power plants is expected to grow significantly.
Europe and North America are expected to Experience the Fastest Growth
The maritime industry of Europe and North America is expected to move toward cleaner LNG fuel faster than rest of the regions, and hence, are expected to continue to be the leaders in the use of LNG as a marine fuel. The growth in developing countries, such as China and India, are expected to drive the marine trade in Asia-Pacific region. But this region lacks the infrastructure required for LNG fuel transportation, which in turn is expected to hinder the growth of LNG market during the forecast period.
Key Developments in the Market
• November 2017: Total acquired Engie’s upstream LNG business for USD 1.49 billion. The acquisition participation interest in liquefaction plants and long-term LNG sales and purchase agreements.
The major players include - Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell, Total, BP, China Petroleum & Chemical Corporation, Conoco Philips, Eni SpA, amongst others.
Reasons to Purchase this Report
• Current and future LNG as a fuel market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness fastest growth during the forecast period
• Identify the latest developments, and strategies employed by the major market players.
• 3 months analyst support along with the Market Estimate sheet (in excel).
Customization of the Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs.
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